In re Peterson's Estate

• Court: Washington Supreme Court
• Writing for the Court: ROBINSON, Justice.
• Citation: In re Peterson's Estate, 107 P.2d 580, 6 Wn.2d 294 (Wash. 1940)
• Decision Date: 27 November 1940
• Docket Number: 27871.
• Parties: In re PETERSON'S ESTATE. v. QUILLIN et al. TAYLOR

107 P.2d 580

6 Wn.2d 294

In re PETERSON'S ESTATE.

TAYLOR v. QUILLIN et al.

No. 27871.

Supreme Court of Washington

November 27, 1940

Department 1.

Proceeding in the matter of the estate of Lars Peterson, deceased wherein Mina B. Quillin and another filed objections to the final report of C. A. J. Taylor, administrator de bonis non. From orders striking the objections and from decree approving the final report, Mina B. Quillin and another appeal.

Decree reversed, orders set aside, and cause remanded with directions.

Appeal from Superior Court, King County; John A. Frater, judge.

W. C Hinman, of Seattle, for appellants.

James C. McKnight, of Seattle, for respondent.

ROBINSON Justice.

This is an appeal from orders striking objections to the final report of the administrator de bonis non of the estate of Lars Peterson, and from the decree and order approving the final report.

The estate is, or rather was, of considerable value. From the last of the three former cases concerning it, which reached this court, National Bank of Commerce v Peterson, 179 Wash. 638, 38 P.2d 361, we quote as follows:

'On September 20, 1924, Lars Peterson died in Seattle leaving an estate, the real property of which was appraised at $224,500 and the personal property appraised at $18,512.05, totaling $243,012.05. At the time of his death there were mortgage and contract indebtednesses against the property in the sum of $63,028.36.

'Notice to creditors was published October 7, 1924. The following claims were filed: Seattle National Bank, on a promissory note, unsecured, for $6,000; C. A. J. Taylor, unsecured, for $1,500; and Bonney-Watson Company for funeral expenses, unsecured, for $2,800. These were allowed and fully paid by the administrator L. A. Peterson. A claim for $234,666.66 by Neola Taylor Higgins was rejected by the administrator, was sued upon, the rejection sustained, the cause appealed, and affirmed by this court on February 7, 1929. Higgins v. Peterson, 150 Wash. 620, 274 P. 186. In that and a preceding case, In re Peterson's Estate, 137 Wash. 137, 241 P. 964, L. A. Peterson was successful in substantiating himself as the son and sole heir of Lars Peterson, and the claim of Neola Taylor Higgins, for the whole estate, was defeated.'

In that opinion, this court also took occasion to say: 'In passing, we wish to observe that our probate statute, Rem.Rev.Stat. § 1517 [P.C. § 9885], makes it the duty of every administrator to settle the estate in his hands as rapidly and as quickly as possible without sacrifice to the estate. We are powerless, as the trial judge in this case probably also felt, to compel more speedy action on the part of the administrator, as directed by the statute within any specified time. He seems, however, to have been managing the estate as if he were the sole owner, or at least under a nonintervention will giving him sole authority. This last is, of course, not true. There seems to be no reason why the estate should not be settled.'

Although this rather pointed suggestion was made by this court on December 10, 1934, no final report and petition for distribution was filed for nearly four years, and when it was filed on November 1, 1938, although the original administrator started out with net assets of about $180,000, and with little more than $10,000 in claims, and although the monies received during the entire administration amounted to $326,978.90, and the expenses to $258,876.58, a difference of $68,102.32, the report showed that there was nothing at all left for distribution, and, in fact, that the attorney for the administrator would have to forego $3,568 of the fees which had been allowed him by the court.

To this report, Mina B. Quillin and Neola Taylor Higgins filed separate objections, to which demurrers were sustained, the objections stricken, and the final report approved. This appeal followed.

We are met at the outset of the case with a motion to dismiss the appeal. This motion was heard on motion day and passed to the merits. It is made on two grounds: First, that the transcript of record on appeal and appellants' brief were not filed within the time prescribed by the rules of the court. The transcript and brief were on file Before the motion to dismiss was filed, and, as the matter is not jurisdictional and since it does not appear that any prejudice to respondent has resulted from the delay, the motion to dismiss on that ground will be denied. The second ground is to the effect that it appears on the face of the record that the two appellants had no standing in law to file objections to the report. This is also the respondent's major contention on the merits.

The opinion in National Bank of Commerce v. Peterson, supra, also recites: 'On September 23, 1931, the judge then sitting as probate judge made an order allowing the attorney for the administrator a fee of $25,000 in addition to an allowance of $1,000 made when the administrator's first report was approved and allowed a like sum to L. A. Peterson, as administrator of the estate. This hearing was ex parte, and both the administrator and his attorney knew that the state inheritance tax had not been adjudged and paid. The administrator paid the federal inheritance tax several years ago, but has never completed his report to the state inheritance tax department. All other steps in the administration of the estate were practically completed in 1929 or 1930.'

L. A. Peterson received $26,300 as administrator's fees, and, as the court remarked in the National Bank of Commerce opinion, seems to have managed the estate as if he were the sole owner, or, at least, under a non-intervention will giving him sole authority. After so managing the estate for thirteen years, he died in October, 1937, and C. A. J. Taylor, the present administrator, was appointed. He recites in his official report: '* * * that all monies received by said administrator [L. A. Peterson] and not expended by him for said estate as above-mentioned, amounting to the sum of $68,102.32, were used by him in his life time; that at the time the said C. A. J. Taylor was appointed as said administrator de bonis non of said estate the only property remaining therein was a small amount of furniture and fixtures of very little value, subject to four years' taxes; that he filed herein a petition for the sale of said property; that on the 16th day of June, 1936, this court ordered the same to be sold and, although he has made diligent effort to do so, he has not been able to get any offer for it over and above enough to pay said taxes; that his attorney James C. McKnight, has offered to take it, subject to said taxes, in payment of the costs advanced and to be advanced by him for said estate and he recommends that his offer be accepted.'

The income from the corpus of the estate is thus accounted for. What became of the corpus itself?

This inventory shows the personal property of the estate and the appraisal as follows:

            1. Household Articles .................
                          
                            $ 500.00
                          
                            2. One Cadillac Automobile ..............
                          
                            1,000.00
                          
                            3. One Watch, one Ladies Dinner Ring, set with small
                            diamonds and one small Gold Ring and other small
                            articles of Jewelry .............................
                          
                            200.00
                          
                            4. One Gold Ring, set with a large Diamond, one Tie
                            Pin, set with large Diamond, two Shirt Studs, each set
                            with a small Diamond and one Gold Ring, set with small
                            Diamond .........
                          
                            1,400.00
                          
                            5. Cash on Deposit in Seattle National Bank, and
                            5,225.27 Cash on person of decedent at death and 54.00
                            Cash refunded from United States for mistake in Income
                            Tax ....................................
                          
                            125.00
                          
                            6. Seventy Shares of Stock in the Lion Oyster House
                            Company, a corporation of Seattle, Washington, par
                            value $100.00 each, or a total par value of $7000.00
                            ....................
                          
                            7,000.00
                          
                            7. Balance of Note due decedent from Geo. W. Miller and
                            Lottie O. Miller, secured by a mortgage on Lot Two (2)
                            in Block One (1) of H. L. Yesler's 1st Addition to
                            Seattle, King County, Washington, amounting to $2007.78
                            at the death of said decedent ........
                          
                            2,007.78
                          
                            8. Ten Shares of Stock in the Community Hotel
                            Corporation, a corporation, of Seattle, Washington, of
                            the par value of Ten Dollars each, or a total par value
                            of $100.00 ..............................
                          
                            1,000.00
                          
                            9. One Second Mortgage Sinking Fund Seven per cent Gold
                            Bond of the Community Hotel Corporation of Seattle,
                            Washington, No. a.M. 1268, for
                          
                            $1,000.00
                          
                            10. The Cave Mine in the State of Idaho, located in
                            Custer County on Bay Horse Creek, which may have
                            reverted to the Government for want of assessment work
                            ........................
                          
                            000.00
                          
                            Total .........................
                          
                            $18,512.05
                          
                

The personal property was disposed of in the following manner: Item 1, or household articles, went to Mr McKnight to reimburse him for some costs. The Cadillac automobile was worn out by the administrator and sold as junk. The jewelry, listed as Items 3 and 4, was, for the most part, sold to Mr. McKnight, and the purchase price credited on his attorney's fee, as...